Tax target met early this year

Tax officials at an information centre under the General Department of Taxation in Hà Nội. VNA/VNS Photo Minh Quyết

HÀ NỘI Việt Nam’s budget revenue met its target early this year, according to Mai Xuân Thanh, director-general of the General Department of Taxation.

Thanh said by December 21, the general department reported this year’s tax revenue at VNĐ1,396 quadrillion (US$57 trillion), exceeding the target by 1.7 per cent as 29 out of 63 localities across the country have completed their 2023 tax estimates.

With just over a week to go, Thanh said tax revenue could see a 5.5 per cent bump this year over the target and amount to 95.4 per cent of last year’s tax revenue.

According to a report by the general department, 16 out of 20 tax categories exceeded or completed the estimated amounts; eight out of 20 tax categories showed growth compared to the same period last year. Additionally, 47 out of 64 tax departments exceeded or completed the state budget revenue estimate for 2023.

In 2023, the total amount of taxes and land rents subject to extension, exemption, or reduction was reported at VNĐ165 quadrillion, of which the amount eligible for extension was VNĐ106.9 quadrillion, and the amount exempted or reduced was VNĐ58 quadrillion.

The general department said that the issuance and implementation of these measures have received unanimous support and high praise from the business community and the public. These policies contribute to supporting businesses and individuals in overcoming difficulties and stabilising their production and business activities to contribute positively to the socio-economic development results.

In addition, it has implemented an electronic tax filing system in all 63 provinces and cities, as well as 100 per cent of its sub-divisions. In 2023, with 99.9 per cent of businesses using electronic tax filing services, more than 15.6 million tax returns were processed. Currently, there are 922,649 active businesses, an increase of over 4 per cent compared to the same period last year.

During this year, tax authorities issued 17,751 decisions on value-added tax refunds, with a total refund amount of VNĐ135.8 quadrillion, representing 84.9 per cent of the amount reported by the Ministry of Finance (MoF) to the government, and 95 per cent of the same period in 2022.

Meanwhile, it has continued promoting modernisation and IT applications to enhance tax management and prevent budget losses. With the nationwide implementation of the electronic invoice system, nearly 6.1 billion invoices have been received and processed, including 1.7 billion with codes and over 4.4 billion without codes.

Moreover, the tax sector expanded the electronic invoice program initiated from cash registers. More than 38,500 businesses have registered to use electronic invoices with codes generated by the tax authorities from cash registers, and the number of electronic invoices received has exceeded 84.2 million.

In implementing the government and the MoF’s directives on electronic invoicing for petroleum business activities, it has instructed local tax authorities to enhance management, inspection, and supervision, promoting the issuance of electronic invoices after each sale. As a result, more than 2,700 Petrolimex gas stations have implemented the issuance of electronic invoices after each sale.

Nguyễn Thị Lan Anh, head of the Small and Medium-sized Enterprises, Household and Individual Tax Management Department said 74 foreign companies have registered, declared and paid taxes through the electronic portal for foreign businesses. The total tax amount paid amounted to VNĐ8 quadrillion, of which VNĐ6.9 quadrillion was declared and paid directly through the electronic portal, and VNĐ1,2 quadrillion was deducted and paid by their Vietnamese counterparts.

However, the general department said 2024’s target, which has been set by the National Assembly, at VNĐ1,486 quadrillion will likely prove to be a challenging task, given the current business climate and difficulties. 

It advised the government to introduce modern tax policies, improve international tax management processes to ensure fairness, emphasise tax efficiency, and timely apply new regulations and legal policies in daily life. VNS